U.S. Behavioral Health Care Software And Services Market Size, Share & Trends Analysis Report By Component (Software, Support Services), By Delivery Model, By Function, By End Use, By Disorder Type, And Segment Forecasts, 2023 - 2030

Report Overview

The U.S. behavioral health care software and services market size was valued at USD 1.2 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 12.20% from 2023 to 2030. The emerging technologies for behavioral health management, rising awareness regarding substance abuse, and expanding reimbursement coverage are contributing to market growth. The adoption of behavioral health care software by care providers is likely to improve the management of mental health issues and treatment prospects. The providers of behavioral health can adopt integrated EHRs for effective practice management and cost savings.

For instance, in May 2022, Osmind, a San Francisco-based firm, raised USD 940 million in Series B financing to expand its technology. The company is dedicated to developing e-health record software for the psychiatrist and its EHR technology is aimed at novel therapies such as psychedelic drugs and neuromodulation treatments including transcranial magnetic stimulation (TMS). The communication between the care providers and patients is simplified by the real-time monitoring system. Integration of new technologies with other treatment approaches assists to improve the effectiveness and productivity of care. Video conferencing is provided by telepsychiatry or Tele-mental health, which helps care providers coordinate with the patients from a distant location.

The U.S. government is particularly concerned about high healthcare expenditures associated with the treatment of behavioral health-related disorders. For instance, the overall impact of substance abuse including treatment is approximately USD 600 billion annually in the U.S., according to the Substance Abuse and Mental Health Services Administration (SAMHSA). The administration stated that substance abuse leads to loss of productivity and increases the burden on public healthcare.

Value-based medicine programs by behavioral health care providers help in reducing the costs related to substance abuse. For instance, in May 2022, the Department of Health and Human Services announced a nearly USD 15 million budgetary opportunity for a 3-year federal grant to create a Substance Abuse and Mental Health Services Administration program. This will improve behavioral health care delivery to citizens of nursing homes and other long-term care facilities. This initiative will construct a Center of Excellence for Capacity Building in Nursing Centers to Serve Patients with Behavioral Health Conditions, which will be funded by the Centers for Medicare & Medicaid Services.

COVID-19 U.S. Behavioral Health Care Software and Services Market Impact: 19.7% increase from 2019 to 2020

The COVID-19 pandemic opened new opportunities for mental wellness apps. There is a shift to virtual care for patients seeking psychiatric treatment. Software providers are undertaking initiatives to help tackle the health crisis. Cerner Corporation provided its associates with online fitness and wellbeing tools and activities for encouraging mental and physical health. Moreover, it worked in association with public authorities, such as CDC, to accelerate data sharing and reduce the overall burden on healthcare facilities. Furthermore, the download and use of mental wellbeing apps such as Calm, Headspace, Reflectly, and Meditopia increased to multiple folds during the pandemic.

Component Insights

The software segment dominated the market with a share of 83.2% in 2022. Behavioral health care software provides care providers to design and choose the optimal treatment plan for a person suffering from mental illnesses such as depression, stress, anxiety, substance abuse, and addiction. The mental wellness software designs the treatment plans based on clinical evidence and related patient records. The software segment is further segmented into integrated and standalone. Integrated software has all the functionalities combined in one single package. It includes governance, billing, appointment scheduling, e-prescription, telehealth, business intelligence, patient management, and other features in a single platform. Based on the component, the market is bifurcated into software and support.

The companies operating in the market are launching new platforms to aid the growth of the market. For instance, in March 2022, NextGen Healthcare, Inc. updated its NextGen Behavioral Health Platform. The suite is the sector's first platform to integrate complete physical, mental health, human services, and dental care in one software solution, and it builds on the company's award-winning NextGen Enterprise e-health record and practice management system. Providing behavioral care during the COVID pandemic demanded certain changes in the software. For instance, COPE Community Services updated its EHR software AXiOM, provided by Health Information Management Systems (HiMS) to include COVID-19 diagnostic tests HCPCS codes, and CPT codes for testing purposes.

Delivery Model Insights

The subscription segment with 62.5% held the majority of the market share in 2022. The segment is anticipated to register the highest CAGR over the forecast period. Behavioral healthcare software solutions can be either subscribed to or purchased, depending on factors such as the availability of capital for investment. Due to limited capital available for investment, small-scale healthcare professionals opt for subscriptions. Based on the delivery model, the market is segmented into ownership and subscription. The ownership segment is expected to witness lucrative growth during the forecast period. This can be attributed to the development of incentive policies for the mental health EHR in the U.S.

For instance, the U.S. government introduced the Improving Access to Behavioral Health Information Technology Act in 2018. Under the act, mental healthcare providers such as psychologists, psychiatric hospitals, and community healthcare centers are eligible for financial incentives for the implementation of the behavioral health EHR system. Large mental health facilities however prefer purchasing and installing software solutions for smooth workflow management. Factors such as the type of Electronic Medical Records (EMRs), requirements of clinicians, and financial requirements are the factors to be considered while installing in-house mental wellness software.

Function Insights

Based on function, the clinical functions segment dominated the market with a share of 51.2% in 2022. Large-scale psychiatry hospitals require the integration of clinical functions with their systems as they have a high patient inflow. This is propelling the market growth. Clinical functions are likely to retain their top position during the forecast period, followed by administrative functions. Mental wellness apps provide clinical services such as scheduling appointments, claim filings, documentation, coding, and billing. Market players offer all-inclusive solutions as well as standalone solutions. Based on the function, the market is categorized into clinical, administrative, and financial.

The administrative segment is expected to witness highest growth with a CAGR of 12.87% during the forecast period. The segment includes patient scheduling, documentation management, case monitoring, employee management, and business intelligence. The documentation management sub-segment is estimated to witness significant growth from 2022 to 2030. Specific customizable templates, organized data, and result metrics are required in electronic papers. In hospitals, clinics, long-term care units, and rehabilitation facilities, document management helps reduce the danger of data overload.

End-use Insights

Based on end-use, providers accounted for 51.7% share of the market in 2022. The payers segment is projected to report a considerable CAGR of 13.36% during the forecast period. This can be attributed to the improving reimbursement policies for psychiatric treatment. For instance, according to the Congressional Office Budget Data of the Healthcare cost institute, approximately 43% more is paid by private players to mental healthcare providers, and 53% greater for psychotherapy. The healthcare cost institute data includes 39 million claims from Humana, UnitedHealthcare, and Atena members. Based on the end-use, the market is classified into providers, payers, and patients.

The payers segment is expected to acquire a significant share in the market during the forecast period. This can be attributed to the improvements in the reimbursement rates for behavioral health care software. The lower reimbursement rates could prevent clinical practitioners from entering the business, thus hindering patients’ access to mental healthcare.

Key Companies & Market Share Insights

The market is characterized by innovation in mobile apps due to evolving needs and demand for tools and software to manage and provide psychiatric treatment. In February 2022, Noble, a new startup for mental wellness, launched an app to provide automated between-session assistance and therapist-formed content, which is backed by research for clients. The app will offer access to clients for a self-guided curriculum, which is assigned to clients between sessions by the psychiatrist. Some prominent players in the U.S. behavioral health care software and services market include:

• Cerner Corporation

• Core Solutions, Inc.

• Epic

• Meditab

• Holmusk

• Netsmart Technologies

• Qualifacts Systems, Inc.

• Welligent, Inc.

• SimplePractice, LLC

• TherapyNotes, LLC

• TheraNest

U.S. Behavioral Health Care Software And Services Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the country level and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2030. For the purpose of this study, Grand View Research has segmented the U.S. behavioral health care software and services market report based on component, delivery model, function, end use, and disorder type:

• Component Outlook(Revenue, USD Million, 2017 - 2030)

  • Software

    • Integrated

    • Standalone

  • Support Services 

• Function Outlook (Revenue, USD Million, 2017 - 2030)

  • Clinical

    • EHRs

    • Clinical Decision Support

    • Care Plans

    • E-prescribing

    • Telehealth

  • Administrative

    • Patient/Client Scheduling

    • Document Management

    • Case Management

    • Workforce Management

    • Business Intelligence

  • Financial

    • Revenue Cycle Management

    • Managed Care

    • General Ledger

    • Payroll

• Delivery Model Outlook (Revenue, USD Million, 2017 - 2030)

  • Ownership

  • Subscription

• End-use Outlook (Revenue, USD Million, 2017 - 2030)

  • Providers

    • Hospitals & Clinics

    • Community Centers

  • Payers

  • Patients

• Disorder Type Outlook (Revenue, USD Million, 2017 - 2030)

  • Anxiety

  • Post-Traumatic Stress Disorder (PSTD)

  • Substance Abuse

  • Schizophrenia

  • Bipolar Disorders

  • Others